SGL Carbon SE's corporate family rating was raised from B3 to B2 by the renowned rating agency “Moody's Investors Services”. The rating of the guaranteed senior secured notes (maturity: September 2024) was also raised from B3 to B2. The outlook for the company remains unchanged at stable.
The upgrade of SGL Carbon's corporate family rating to B2 positively reflects its solid credit metrics, global production footprint and exposure to high-growth end markets such as semiconductors. The current strong cash position and management's track record further support the credit profile. Moody's continues to expect SGL Carbon to maintain its solid credit metrics comfortably within expectations for its B2 rating over the next 12-18 months.
Moody's expects SGL Carbon's gross leverage ratio, as defined by Moody's, to be around 4x in 2022 (2021: 6.2x) and to remain below 5x in 2023. This assessment includes a moderate decline in earnings due to a weaker macroeconomic environment and higher production costs. Solid demand for high-margin graphite-based solutions partially mitigates these headwinds. In this context, SGL Carbon benefits from very favorable growth prospects in the market for silicon carbide-based semiconductors.